The Fort McMurray Chamber of Commerce pledged its support for the food industry amid the COVID-19 crisis, in particular restaurants.
The organization said restaurants across Canada were the hardest hit in the pandemic with 800,000 jobs lost.
YMM Chamber said food services are unique to other businesses due to high fixed costs, thin margins, seasonality, high liquidity, and perishable inventory.
Safety requirements from the pandemic also impact revenue and drive up costs.
Owner of Stacs Fine Food and Chef2You Food Service, Steven Nieuhaus said the cancellation of events and bookings from the start of the shutdown cost his business $85,000.
“The effects of COVID-19 on our local small business have most definitely impacted the way we do business and have us continually adapting our model to stay relevant in the marketplace. There is no way to make this type of revenue back, no matter how creative you are, but we have made a solid effort to adjust and keep the doors to our little cafe still swinging open.”
Despite adjustments like decreasing hours to retain staff, Niehaus said he is unsure how long they can stay in business in the next 12 months.
“We will continue to fight for and adapt our business to stay open, but this will ultimately come down to wise business decisions. Small business continues to be the heartbeat of our country, and we sometimes need a lift.”
YMM Chamber said despite government supports, restaurants like Stacs face an uncertain future.
Michael Durocher is the General Manager of the Mr Mike’s Steakhouse franchise in Fort McMurray.
He said wage subsidy programs sustain the food services industry devastated by COVID-19.
“The population of each local area in Canada which support restaurants and the freedom of choice are currently dependant of the support of Canada. Of the remaining restaurants offering service to those communities, the program delivers support for those who would like to exercise their freedom to offer dining option to those wanting and desiring a bit of normalcy during these trying times.”
Durocher added he hopes Canada will stand behind food services and support the wage subsidy program until things return to normalcy.
National outlook
Prior to COVID-19 in Canada, food services created one out of 15 jobs in the country, employing 1.2-million Canadians.
Around 100,000 restaurants serve 22-million meals per day, pay $30-billion in wages and benefits, and contribute $31-billion per year to Canada’s GDP.
Due to physical distancing rules and revenues are off between 60 and 70 per cent as costs to restaurants remain unchanged from before the pandemic.
10% of restaurants have permanently closed due to the impacts of COVID-19.
We’re calling for a renewed commitment to help foodservice businesses avoid further closures and job losses as colder weather approaches.
Learn more: https://t.co/Oz5JRDb6H9#FeedingTheRecovery
— Restaurants Canada (@RestaurantsCA) September 15, 2020
Local restauranteurs and YMM Chamber said the industry cannot run on a loss indefinitely.
“Our restaurants are cornerstones in communities of all sizes across Canada.” Said Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “By taking the necessary actions to create the conditions for success, together we can create a win-win for more Canadians to get back to work and prevent the failure of a key industry in the coming
year.”
Beatty added a national effort is underway to assist restaurants.
The group “Our Restaurants” suggests improving the Canada Emergency Wage Subsidy (CEWS) and extending the Canada Emergency Commercial Rent Assistance program (CECRA).
It also supports expanding liquor licencing options for restaurants and reducing taxes, fees, and other regulations.
“For us in Wood Buffalo, there is nothing like celebrating a special occasion, catching up with friends, encountering someone you had not seen for a long time while enjoying a great meal.” Said Dianna de Sousa, Executive Director of the Fort McMurray Chamber of Commerce. “Supporting our community’s restaurants during these difficult times will ensure we have these wonderful places to make new memories for our future celebrations.”
De Sousa said Canadians should be there for restaurants and food services industry.
